Kevin Warsh Has a Problem

Kevin Warsh was handpicked to lead the world’s most important bank, with a remit from U.S. President Donald Trump to do one thing: lower interest rates. But economic reality, especially stubborn inflation, won’t allow the Federal Reserve to do that, and so it is now facing the wrath of both financial markets and the White House.

Add to that a novel, confusing, and contradictory communication style, and Warsh’s early steps as Fed chair have been less than encouraging. That is problematic when what the Fed says, almost as much as what it does, has huge implications for the United States and global economies.

Kevin Warsh was handpicked to lead the world’s most important bank, with a remit from U.S. President Donald Trump to do one thing: lower interest rates. But economic reality, especially stubborn inflation, won’t allow the Federal Reserve to do that, and so it is now facing the wrath of both financial markets and the White House.

Add to that a novel, confusing, and contradictory communication style, and Warsh’s early steps as Fed chair have been less than encouraging. That is problematic when what the Fed says, almost as much as what it does, has huge implications for the United States and global economies.